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Banking Wizardry: Deposits Dwindle, Credit Takes Flight in December

Banking Wizardry: Deposits Dwindle, Credit Takes Flight in December

In the mystical land of India's banking realm, the latest RBI scrolls reveal a curious saga. As of December 12, deposits grew at a mere 9.7%, while the magic of credit soared to 11.7%! With a 200 basis point chasm, our valiant bankers must conjure deposits to keep the liquidity spell alive. Yet, a mysterious decline of ₹45,344 crore looms. Can they balance their potions and protect their treasures? Only time will reveal the enchantment!

Quick rundown

  1. Credit growth outpaces deposit growth by 200 basis points.
  2. RBI cuts repo rate by 25 bps, totaling 125 bps in easing cycle.
  3. Banks face pressure balancing deposit rates and credit growth.
  4. RBI's liquidity measures aim to sustain credit growth.
  5. Banks increasingly rely on certificates of deposit amid tight conditions.

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